CPEC

CPEC involves investment of $46 Billion in energy, infrastructure, and industry in addition to
the Gwadar Port. CPEC is envisaged to increase Pakistan’s GDP by 15% .
The projects include more than $ 1 billion worth of projects to bring Gwadar Port to international
standards; $ 33.8 billion and 16000 MW worth of energy projects;34 $ 11.8 billion in
infrastructure projects; and long term industrial cooperation.35 CPEC spans 15 years, 4 phases,
51 projects, aligned along 3 routes.
Gwadar Port
Connect Afghanistan and Central Asia – Asia Specific region with indian Ocean and the Europe.
It provides the shortest land route for these countries and also for China from its western part in
Kashgar.
Gwadar as western most pearl in Indian Ocean, effectively dominates Strait of Hormuz and serve
as most critical outpost from Indian Ocean to Middle East.
Geography
CPEC offers shortest and most viable route to Indian Ocean. Its integration into Maritime Silk
Route (MSR) offers strategic Importance for China. CPEC can be categorized as “Land Bridge “
FOR China’s trade , particularity the oil imports . China imports 60% of its oil from Gulf
countries so construction of Gwadar will provide cheap oil import to China.
It completely replaces the current trade route of china, Strait of Malacca having distance of 5000
km with land and sea to South/ East Asia and Europe and merge the distance to 2000 km .
Global Perspective – China Vision behind the project
USA: Rebalancing US maritime strategy in Indian Ocean and the Asia Specific
India: Control and counter India dominance in the Indian Ocean
EU: Access to EU
Regional Perspectives
India
India openly opposed the CPEC project. She criticized the passing of route from disputed
territory Gilgit Baltistan. India investment of US 500 million dollars in first phase of chabahar
post is a counter effort to Gwadar development.
Afghanistan
Afghanistan security and uncertain stability also passes to CPEC inform of non-state actors.
Furthermore, Afghanistan is a central point for central Asia Countries to get access to Gwadar
port and hence to CPEC. Afghan peace will give Pakistan and China access to Central Asia
Republics and the Vice Versa.
Iran
After lifting of sanction on Iran she might be potential ally in project, she has showed the interest
to be a part of CPEC. Iran export 50% of the oil to southeast Asian Countries which then can be
easily accessed through Gwadar port and CPEC infrastructure. Pakistan-Iran might be integrated
in extended version of CPEC with Iran.
Russia
Russia increasing engagement with China and Middle East Countries makes Pakistan
strategically important for Russian diplomacy.
Threats
External
India opposition is not covered from anyone. She may move on the path to disturb the regional
stability to sabotage the CPEC. US is rebalancing the China rise in the global context so she may
demand from Pakistan. Afghanistan may be used against the CPEC. Inia – US nexus against the
Pakistan may be fatal for the CPEC.
Internal
 Non state actors
 Transition of government and consequent policy change towards CPEC.
 Security of CPEC Chinese workers
Temporary halt
Gwadar Internationl Airport was expected to complete by 2020 but due to resistance from non-
state actors it is apparently further delayed for 3-4 to years because inaugural ceremony of the
airport was held in March,2019. Dera Ismail Khan to Baluchistan Wester Route has also been
abandoned. Green line and orange line projects are under temporary halt. work is stalled on the
land acquired for Gwadar Airport. Work on the Gwadar Port - a key project of the corridor - also
remains frozen
 Alleged corruption charges by incumbent minsters
 China refusal to process payments
 Conditionality’s of US-backed IMF to increase revenue while halting the projects
 Targeted accountability and fear among policy makers